Low summer demand and high PV output in the first half of the year suppressed wholesale prices to record low levels across the NEM. Prices started to increase in May, spiking in June as a result of outages and increasing natural gas prices. Currently, prices are relatively stable and we view current electricity prices as fair. We maintain our view that the risk of prices increasing is greater than the risk of prices decreasing.

 

Mild summer in South Australia, with only a handful of days above 30 degrees, meant that prices stayed low over the period. Suppressed regularly by negative spot prices and strong rooftop solar generation, SA prices dropped below $40/MWh, but started to increase in the autumn, peaking in July and stabilising at $50-$55/MWh price range.

 

To find out more about what is happening in the other states or find out what effect these prices can have on your energy portfolio, contact one of our energy professionals on 1300 277 233 or email info@energyintel.com.au.